Process Safety Management of Highly Hazardous Chemicals, Notice of John Gray Institute Report on Contractors, and Request for Comments

DEPARTMENT OF LABOR

Occupational Safety and Health Administration

29 CFR Part 1910

(Docket S-026)

RIN 1218-AB20

Process Safety Management of Highly Hazardous Chemicals

AGENCY: Occupational Safety and Health Administration (OSHA), Labor.

ACTION: Proposed rule; notice of availability of the John Gray Institute
report on contractors and peer reviews of the report; reopening of the record
to reexamine the issue of contractors in light of the study; and request for
comments.

SUMMARY: This document announces the availability of a study conducted by
the John Gray Institute of Lamar University (John Gray report) concerning the
use of contractors in the petrochemical industry and invites the public to
reexamine, in light of this study, the contractor provisions contained in the
proposed standard for Process Safety Management of Highly Hazardous Chemicals
(Process Safety Management standard), published on July 17, 1990 (55 FR
29150). OSHA wants to assure that safety issues surrounding contractor
employees who are exposed or may expose site employees to potentially
catastrophic events are thoroughly addressed in the final Process Safety
Management standard. The John Gray report addresses various aspects of this
issue and may be pertinent to the proposed standard.

DATE: Comments must be postmarked by October 24, 1991.

ADDRESSES: JOHN GRAY REPORT. The John Gray report, "Managing Worker Safety
and Health: The Case of Contract Labor in the U.S. Petrochemical Industry,"
as well as the peer reviews of the report, are available upon request from
the Docket Office, U.S. Department of Labor, Occupational Safety and Health
Administration, N2625, 200 Constitution Avenue, N.W., Washington, D.C. 20210,
telephone (202) 523- 7894.

COMMENTS. Comments on the John Gray report and the contractor provisions
contained in the proposed Process Safety Management standard should be
submitted in quadruplicate to the Docket Office, Docket S-026, U.S.
Department of Labor, Occupational Safety and Health Administration, N2625,
200 Constitution Avenue, N.W., Washington, D.C. 20210.

On October 23, 1989, catastrophic explosions and fires occurred at the
Phillips 66 Company's Houston Chemical Complex resulting in 23 deaths and
more than 130 injuries. The issue of contractors at the workplace surfaced
since a contractor had been working in the vicinity of the release.

OSHA's growing experience with the petrochemical industry indicated that a
significant number of companies in this industry were using contractors to
perform regular maintenance, repairs, construction, and renovation. The
Agency determined that more information was needed about the extent to which
contract work might affect workplace safety.

OSHA asked the John Gray Institute to conduct a study of safety and health
issues as they relate to contract work in the petrochemical industry. The
Institute was guided on the methodology and approach for the study by a
Steering Committee made up of representatives from labor, management and
academia.

The John Gray Institute report examined such factors as the extent of
industry reliance upon contract employees; the nature of work performed by
contractors; the role of safety records in contractor selection; the training
provided to employees and the supervision accorded to safety and health
compliance for contract operations as compared with that for company
operations; and injury/illness recordkeeping.

(h) Contractors. (1) The employer shall inform contractors
performing work on, or near, a process of the known potential fire, explosion
or toxic release hazards related to the contractor's work and the process,
and ensure that contract employees are trained in the work practices
necessary to safely perform their job. The employer shall also inform
contractors of any applicable safety rules of the facility.

(2) The employer shall explain to contractors the applicable
provisions of the emergency action plan required by paragraph (n) of this
section.

(3) Contract employers shall assure that each of their employees
follow all applicable work practices and safety rules of the facility. (55 FR
29164-29165)

OSHA has received significant input on these contractor provisions during
the rulemaking on the Process Safety Management standard and this information
will be thoroughly considered in the development of the final provisions.

II. AGENCY ACTION

Since the John Gray report contains information that may be relevant to the
contractor provisions of the proposal, the Agency is reopening the record to
receive the report and to allow the public an opportunity to comment on the
report. Therefore, OSHA invites interested persons to comment on the John
Gray report particularly focusing comments on how the report should influence
the Process Safety Management proposal.

Also, because this study may be an important factor in the development of
safety requirements for contractors, OSHA believed that it was appropriate
for the study to undergo a peer review to ensure the reliability of the study
and its findings. These peer reviews are also available in the Docket
Office.

PUBLIC PARTICIPATION

Interested persons are invited to submit written data, views, and arguments
on the John Gray report and how it should affect the July 17, 1990, PSM
proposal. Comments must be postmarked by (Insert date 30 days from date of
publication in the FEDERAL REGISTER). Four copies of comments must be
submitted to the OSHA Docket Office, Docket S-026, U.S. Department of Labor,
Occupational Safety and Health Administration, N2625, 200 Constitution
Avenue, N.W., Washington, D.C. 20210. The telephone number of the Docket
Office is (202)523-7894, and its hours of operation are 10:00 a.m. to 4:00
p.m., Monday through Friday. Comments limited to 10 pages or less may also
be transmitted by facsimile to (202)523-5046, provided that the original and
four copies of the comment are subsequently sent to the Docket Office.

All materials submitted will be available for inspection and copying at this
address. All submissions will become a part of the record developed for the
process safety management of highly hazardous chemicals rulemaking.

The contractor provisions will be reviewed in light of all submissions
received. Decisions on the contractor provisions will be made by the
Assistant Secretary based on the entire record of the proceeding.

AUTHORITY

This document has been prepared under the direction of Gerard F. Scannell,
Assistant Secretary of Labor for Occupational Safety and Health, U.S.
Department of Labor, 200 Constitution Avenue N.W., Washington, D.C. 20210.

It is issued under section 6(b) of the Occupational Safety and Health Act of
1970 (29 U.S.C. 655); Secretary of Labor's Order No. 1-90 (55 FR 9033); and
29 CFR part 1911.

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